FAIR VALUE MEASUREMENT

ASC 825-10 defines fair value as the price
that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded
at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions
that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk
of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs
and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be
used to measure fair value:

Level 2—Observable inputs other than
Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent
transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived
principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs to the valuation
methodology that are significant to the measurement of fair value of assets or liabilities.

Items recorded or measured at fair value on
a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2017:

Level 1

Level 2

Level 3

Total

Warrant liability

$

-

$

-

$

175,975

$

175,975

There no items recorded or measured at fair
value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December
31, 2018 (See Note 11).

The table below sets forth a summary of changes
in the fair value of the Company’s Level 3 financial liabilities from December 31, 2016 through December 31, 2018:

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.